Summary
- David Prouty (Member, National Labor Relations Board) said the restored quorum cut the backlog from 591 to 396 cases after deciding 369 cases in five months.
- Brett Matsumoto (Nominee for Commissioner, Bureau of Labor Statistics) pledged to keep BLS independent and have career staff approve all methodological changes transparently.
- Senator Sanders pressed James Macy (Director for the Office of Workers Compensation Programs, US Department of Labor) on wages, firings and captive meetings, but Macy declined to answer.
- Chairman Cassidy stressed fixing inaccurate jobs revisions and NLRB stability, while Ranking Member Sanders condemned anti-worker policies and opposed Macy and Matsumoto.
- If confirmed, Macy and Prouty would restore the NLRB toward full five-member strength to accelerate decisions, while Matsumoto would lead BLS modernization amid falling survey response rates.
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Transcript
the committee senate committee on health education labor and pensions will please come to order i apologize for being late there was a business meeting in e n r that went long so i apologize first i thank the nominees for being here and your families for agreeing to the sacrifice that you're making on behalf of our country The National Labor Relations Board, or NLRB, is tasked with resolving labor disputes and protecting workers' rights under federal law. Under the Biden administration, the NLRB overturned decades of precedent, creating instability for workers in the nation's economy. We now have the opportunity to put workers first and maintain the board's quorum so that it works as it is supposed to work. If confirmed to the NLRB, Mister Jim Macy and Mister David Prouty will be charged to clear the backlog of cases and restore certainty for workers in the nation's economy. In addition to the NLRB nominees, we will hear from Doctor Brett Matsumoto, nominated to be the Commissioner at the Bureau of Labor Statistics. The current job report process is not working, with significant corrections to the numbers months later, resulting in large swings in the stock market and the retirement portfolios for many Americans. It's confirmed Doctor Matsumoto will be tasked with bringing transparency, innovation and accuracy to our nation's economic data, including job numbers. Thank you all for being here. Again, thank to the families for the support they give you. And with that, I recognize Senator Sanders.
Thank you, Mister Chairman. Um At a time of massive income and wealth inequality where the people on top have never done better, while sixty percent of our people live in paychecks to paycheck. struggling to put food on the table or pay for healthcare uh workers all over this country are turning to unions as a way to get decent wages decent working conditions decent benefits that's the fact they're hurting they understand that they can't do it alone they need solidarity and they're working with unions and what we are also seeing is that while workers want uh to join unions we are seeing in incredibly brazen ways company is breaking the law you wanna form a union we're gonna fire you we're gonna move to china um uh you gonna be penalized all because you wanna be part of a union and if by some reason workers actually form a union uh it takes them forever to get a first contract and then workers then become demoralized uh and they they give up on the process so forming a union is a constitutional right workers wanna do it and in order for them to be successful uh they need a national labor relations board which stands up for them which is in fact what the nlrb is supposed to do unfortunately uh that has not been the case and that effort uh anti-worker effort is being led by president trump who has ripped up the union contracts of a million federal workers has illegally fired hundreds of thousands of workers has rescinded a federal rule that would have provided overtime pay to more than four million workers and in the first year in office he effectively shut down the nlrb the only federal agency in america that can hold corporations accountable for illegal union busting by illegally firing when uh wilcox this morning we will be considering two of president trump's nlrb nominees james macy who would be new to the board and david proudy to serve another term at this agency. Uh, Mister Chairman, I support Mister Prouty's renomination, but I am opposed to Mister Macy's nomination. And let me very briefly tell you why. As I understand it, Mister Macy has spent most of his career representing the interests of management, not ordinary workers. Further, as a senior official at the Department of Labor, Mister Macy has worked on policies that undermine working families. For example, at the Department of Labor, he worked on a proposed rule that would deny over a million home care workers, the right to the federal minimum wage and overtime pay. Uh. Mister Chairman, we need members of the NLRB who will protect the rights of workers, not undermine them. We also, today, considering the nomination of Brett Matsumoto to be commissioned of the Bureau of Labor Statistics, a very, very important position. a couple of months ago president trump made the unacceptable decision to fire the previous bls commissioner doctor erica uh macantherfer uh because he absurdly claimed that she rigged and manipulated employment statistics that was of course a lie doctor uh macantherfer was confirmed in the senate by a vote of eighty six to eight with an overwhelming majority of republicans and democrats voting for a confirmation She was extremely well qualified and there was zero evidence that she did anything inappropriate. So, uh, I will not support the nomination of Doctor Matsumoto. Thank you.
We're join uh begin with Mister Macy. We're joined today by James Macy, nominee for the National Labor Relations Board. He'll be introduced by our colleague, Senator Ron Johnson, who represents Mister Macy's home state of Wisconsin. uh i noticed that you both pronounced johnson the same way which tells me that there's a wisconsin accent you know what i'm saying and uh uh so i what's that yeah it is no accent that's only if you're from louisiana i yield to my colleague senator johnson uh thank you and i look forward to hearing from you mister macy after that
we're we're not the ones that talk funny here but uh you know mr uh chairman cassidy ranking member uh sanders members of the committee It is my honor to introduce Jim Macy as a nominee to serve on the National Labor Relations Board. Like me, Jim's hometown is Oshkosh, Wisconsin. I've known and worked with Jim for more than twenty years. He was my comp- company's outside counsel on labor matters, and we served together on multiple boards of Oshkosh community organizations. He is a consummate professional, who maintains the highest standard of integrity. Jim brings more than four decades of experience in labor and employment law, grounded in both deep professional expertise and a lifelong commitment to public service. A native in Milwaukee, Wisconsin, he was raised in Menominee Falls and educated in s- in the state's public schools, graduating the top ten percent of his high school class. He graduated summa cum laude from the University of Wisconsin La Crosse, with with a bachelor's of science degree in political science. He earned his law degree from the University of Wisconsin Law School, working multiple jobs to finance his education. Jim was a partner at several prominent Milwaukee-based law firms, where he focused primarily on labor and employment matters. He chaired multiple labor and employment practice groups, and earns a consistent recognition from best lawyers in America and super lawyers for his professional excellence. He's admitted to practice in both Wisconsin and Florida. Beyond his legal career, Jim has always demonstrated a strong commitment to his community. He has served in numerous leadership roles, including chair of the Oshkosh area chamber of commerce, chair of the leadership Oshkosh steering committee, and chair of the grand opera house board, uh, supporting the arts. He's also contributed his time to local school foundation, a municipal zoning board of review, and Lakeside Packaging Plus, an organization dedicated to expanding opportunities for individuals with diverse abilities. Following his retirement from private practice, Jim continued his public service by joining the Department of Labor in September, twenty twenty five. Since then he has served as Senior Counselor in the Secretary's office, acting as Administrator for the, of the Wage and Hour Division, and currently as Director of the Office of Workers' Compensation Programs. In each role, he has demonstrated exceptional leadership and a commitment to advancing the department's mission. Jim is a devoted father, Jim is a devoted father of three sons, a long-time youth sports coach and official, as one would expect a loyal Wisconsin Badgers and Green Bay Packer fan. Also like me, Jim is a connoisseur of Oshkosh of uh Wisconsin's finest cheese curds. I think you guys have uh learned to appreciate those as well. Uh, his depth of experience, dedication to fairness in the workplace, and record of service make him a strong and well-qualified nominee for the National Labor Relations Board. I highly recommend that the members of this committee support his nomination. Thank you.
Mister Macy.
Good morning. Chairman Cassidy, Ranking Member Sanders, And members of the committee, thank you for the opportunity to appear before you today. I'd also like to thank Senator Johnson for his kind introduction and for being here today. I greatly appreciate his support and his friendship. While I have the support, the full support of my sons, Jack and Austin, and my stepson, Ben, they're not able to be here today. Um, Jack is attending US Marine Officer School at Quantico. Austin's back at home working in auto sales and Ben's back at home working for the city of Oshkosh. I am proud of all of them. I'm truly honored to be here and grateful to President Trump for nominating me to serve on the National Labor Relations Board. I am a lifelong Wisconsinite and should the Senate see fit to confirm my nomination, I'd be the first NLRB member from Wisconsin since the board was established under the act. While one Wisconsinite was appointed to the pres- predecessor NLRB, NLB, he served four months limited to assisting with the establishment of that board. It would be an incredible privilege to serve in coming from the Midwest. I was born in Milwaukee, grew up in the suburb of Menominee Falls, attended the University of La Crosse, Wisconsin La Crosse, and earned my law degree from the University of Wisconsin Law School. I am a product of the strong Wisconsin public school system. My parents taught me the values of hard work, honesty, education, and respect for all people. Those values have guided me throughout my life and career. I practiced labor and employment law for more than forty years. During that time, I primarily represented employers. Participated in hundreds of collective bargaining negotiations. Tried hundreds of administrative cases. Appeared before most, if not all, of the state and federal labor agencies. Worked with employees and representatives of union and management across many different industries and with many different unions. I also acted as an independent hearing officer in over a hundred separate due process cases. These experiences taught me the importance of listening carefully, respecting different points of view, and building on common ground, finding practical solutions. They also gave me a deep appreciation for the role of the National Labor Relations Act and what it plays in promoting stable labor-management relations. More recently, I've had the privilege of serving at the Department of Labor, first as senior counselor to the secretary's office, then as acting administrator for the wage and hour division, and currently as the director of the office of workers' compensation programs. In each of these roles, my focus remain on following the law and forwarding the president's initiative in helping the American workers. Senators, I can tell you all, you can all be proud of the many dedicated employees at each of these agencies, and the work they're doing every day, again, in support of the American workers. I've always appreciated the vital role that the National Labor Relations Board plays in protecting the rights of all employees to freely associate and bargain collectively as they decide while promoting stability and labor management relations. I have always appreciated the vital role the National Labor Relations Board plays in supporting commerce. Workers deserve to know that their statutory rights will be protected. Employers in labor organizations of all sizes deserve clarity, competence, and impartiality from government. I also recognize the importance of timely decision making. Delays can be difficult for all parties involved in a labor dispute. While every case must be considered carefully and decided on its merits, I believe the board should strive to resolve all matters as efficiently as possible and provide prompt, fair adjudication to those who come before the agency. I compliment current members, Murphy, Mayer, and Prouty for the work they've done on the backlog, and I welcome the opportunity to assist them if confirmed. It'd be a tremendous honor to serve on the National Labor Relations Board. I pledge that if confirmed, I will faithfully uphold my oath of office, and discharge my responsibilities with integrity, fairness, and independence. Thank you for the opportunity to appear before you today. I look forward to your questions, with the exception of maybe cheese curds.
Next, we're joined by a board member, David Prouty, nominee uh for, I guess, reappointment to the National Labor Relations Board. He'll be introduced by our colleague, Senator Chris Van Hollen, who represents
Well, thank you, uh, Mr. Chairman, ranking member Sanders, uh, members of the committee. I'm honored to join you to once again, uh, introduce David Prouty, who hails from my home state of Maryland and has been nominated by the president to serve a second term on the National Labor Relations Board. As you know, we have a long history of pairing nominees to ensure that the independent agencies of government remain balanced. And I appreciate the chairman for continuing that tradition by considering the nominations of both Mister Macy and Mister Prouty today. Five years ago, when he first came before the Senate, Mister Prouty brought with him a distinguished career as a leading labor attorney. His professional life has been devoted to representing working people and defending their rights guaranteed under our country's labor laws. And so over the last five years, Mister Prouty has served as a member of the NLRB during a consequential period for American labor relations. The board, as you know, has confronted significant questions involving organizing rights, collective bargaining, workplace protections and the interpretation of the National Labor Labor Relations Act in a rapidly changing economy. Throughout his tenure on the NLRB, Mister Prouty has exemplified the board's mission by enforcing the country's labor laws in order to promote stability in labor management relations and encourage collective bargaining. Mr. Prouty's service reflects an understanding that the board benefits from a diversity of professional experiences and viewpoints. He has served alongside workers advancing collective bargaining and he has spent the last five years working alongside colleagues whose backgrounds include management-side labor law, and government service, and together they have protected and promoted the rights of workers in accordance with the law. The NLRB's work often involves issues that generate strong views from workers, employers, unions, and policymakers alike. Members of this committee know that, but one of the hallmarks of public service is the willingness to approach these questions thoughtfully, engage seriously, with competing arguments, and faithfully apply the law. Mr. Prouty has proven his ability to do just that over the last five years as a board member. Whether serving as advocate, counselor, or NLRB board member, he has dedicated his professional life to America's workers, and I appreciate his willingness to continue to serve colleagues. It's for those reasons that, and many more, I should say, that I'm honored to present to you one of the president's nominees to serve on the national labor relations board maryland's own david prouty
mr. prouty
thank you members and members of the committee thank you for the opportunity to appear before you i'm honored by president trump's nomination and by your consideration of me for a second term uh uh as a member of the national labor relations board i wanna thank uh senator van holland for his kind introduction uh I'm joined here today by my brother Douglas Prouty, who's a former Montgomery County, Maryland high school teacher, and also, I should note, president of its teachers' union. My wife, Olive Krohn, a midwife and a native of the Republic of Ireland, is home recovering from a broken ankle. She is watching remotely, as are my sisters, Carolyn and Eleanor, and my children, Connor and Molly. Also no doubt watching are the members of my outstanding staff at the NLRB, as well as many other colleagues from our great agency. Since twenty twenty one, I've built a record of decisions and statements as a board member, and that's probably the most relevant information for you to consider, as you pass on my qualifications for a second term. But I'll make a few brief points nonetheless. First, I'm happy to report that since the Senate confirmed the nominations of my two new colleagues and they took office in January of this year not only was a quorum of the NLRB restored so that the board could return to issuing decisions, but we have also been prolific in doing so. Since early January we've reduced the backlog at the NLRB of five hundred ninety-one cases, down to three hundred ninety-six. Course in the meantime a hundred and seventy-four new cases came through the door, but in total we've decided three hundred sixty-nine cases in the brief five months since the quorum was restored. I believe the board operates best with its full complement of five members, so whilst of course in my self-interest to say so, i do hope the senate will act promptly and favorably on the nominations of my friend mister macy and myself so that we can keep that momentum going second it's been an honor to serve as a member of the of the board for the past five years in that time i've come to have a greater appreciation for the nlrb its history its mission and most of all for the dedicated government employees who work for it and who are committed to enforcing the rights of workers protected by the national labor relations act Third, as my resume makes clear, I spent the thirty first thirty-five years of my legal career as a union side lawyer. I proudly represented a wide spectrum of workers from clothing, textile, and laundry employees, to hotel housekeepers, to restaurant staff, to major league baseball players, to building doormen and janitors, and I negotiated dozens of collective bargaining agreements with those workers' employers. However, I've spent the past five years as a neutral. conscientiously applying the law to the facts of each case. Of course, every person on the board brings their different life experiences to this task. And my understanding of the act is no doubt shaped by the years I spent litigating both unfair labor practice cases and union elect election cases before the NLRB. But I believe that the public and the parties who appear by the board are all best served by having a variety of viewpoints within the labor management field, represented on the board. The current board, for instance, consists of myself, a former union lawyer, along with Scott Mayer, a lifetime management lawyer, and Jim Murphy, a career NLRB lawyer. Each of us, and Mister Macy, should we both be confirmed by the Senate, will approach our jobs from a different point of view, and I think that's a good thing. Finally, I'm proud of my record as a board member. No doubt you'll have questions about some of the cases we decided during the Biden board era and I welcome them. But whether you agree or disagree with my positions, I can assure you that each decision was carefully studied by each board member involved and was released only after thorough consideration of all sides of the issues presented. And as you'll see, I haven't always agreed with my board colleagues, be they a Republican or Democrat. I've always voted the courage of my convictions. And the one promise I can make if I'm confirmed again is that I will continue, as we say in baseball, to call them as I see them. i also wanna say that nlrb members republicans and democrats very often agree historically well over eighty percent of the cases decided by the nlrb are decided unanimously that is by a three zero vote of the panel assigned to the case in fact of of the over two hundred thirty contested cases that we have decided since january only nine times has anyone admittedly usually me dissented as i said in my opening statement five years ago i believe in the guiding behind the national labor relations act and which its preamble so eloquently declares, is intended to quote " encourage the practice and procedure of collective bargaining". I believe that everyone, employees, employers, unions, and the public at large is best served when workers and their employers can sit across the table from one another as equals under the law, and negotiate in an open, respectful, and creative manner over the terms and conditions of their employment. Thank you, and I'd be happy to answer any questions you have.
Thank you, sir. Uh, next we're joined by Doc, uh, Doctor Brett Matsumoto, nominee to be the Commissioner of the Bureau of Labor Statistics. The doctor is a research economist at the Bureau of Labor Statistics Division of Price Indexed Numbers Research. He has specialized in research to support the consumer price index, particularly medical research. He received his undergraduate and master's degree from the University of Delaware, and PHD in economics from the University of North Carolina Chapel Hill. Thank you, sir, for being with us.
Good morning. Uh, Chairman Cassidy, Ranking Member Sanders, and members of the committee, it is an honor to appear before you as a nominee to be Commissioner of the Bureau of Labor Statistics. It is an honor to have been nominated by President Trump for this important position. Before beginning, I would like to thank all of the people who are responsible for getting me to where I am today. my parents and my older brothers, as well as other relatives, teachers, and mentors. I would also like to thank everyone who made positive statements regarding my nomination. When President Trump announced the intention to nominate me for this position, there was a lot of media interest. Although reading news stories about myself is something I'm still getting used to, I was humbled by the positive reactions of economists across the political spectrum. I grew up in Delaware and attended college at the University of Delaware. After graduating with degrees in philosophy, history, economics, and a master's in economics, I went to the University of North Carolina for a PHD in economics, where I specialized in applied microeconomics. After completing my PHD, I got a job at the Bureau of Labor Statistics. I have worked for the Bureau of Labor Statistics since two thousand fifteen, on economic measurement topics. I have published on topics relating to inflation and consumption measurement. i have also worked on projects to support the production offices uh mainly the consumer price index program uh this includes work on alternative data projects uh most notably a project to to replace traditionally collected data with insurance claims data for the medical price indexes in september twenty twenty four i was promoted to a supervisory position where i oversee a small team of economists in the first trump administration i did a detail the council of economic advisors where i worked on labor and health topics in early twenty twenty five i was asked to do another detail by the incoming chairman of the cea and i have been in that role since while working at the cea i have gained a great appreciation for the official economic statistics from the perspective of a data user much of the analysis done at the cea would be impossible without the official data and having timely and accurate data is extremely important in the process of developing good economic policies. I believe strongly in the mission of the BLS to produce objective quality measures and analyses of labor market activity working conditions, price changes and productivity in the United States economy to support public and private decision making. To achieve this mission, it is important for the public to be confident that decisions at the BLS are being driven by science rather than politics. If confirmed, I will commit to maintain the integrity and independence of the BLS. Also, any changes to data or methods will be approved by career staff at the agency and communicated to the public ahead of time, along with research supporting the change. If confirmed, I would be leading the BLS at a pivotal moment. Our statistical system is built upon surveys of businesses and households. The continued decline in response rates threatens the future reliability of a survey-based statistical system, and may already be having impacts on sample sizes, the variability of data, and revisions. My priority as Commissioner would be pursuing efforts to mitigate the decline in response rates while pursuing a research agenda into alternative data sources that could be used to supplement or replace traditional survey data. I will also focus on improving
thank you uh i'll begin with you sir you you mentioned alternative data sources for context uh bls overestimated job growth by uh eight hundred and sixty one thousand million jobs That can't be right, right? Is that right? From April twenty fourth to March twenty twenty five, the largest revision since you began tracking this data, and you mentioned using alternative survey sources. Do you have an idea of what those alternative sources would be?
Yeah, so, when looking at uh payroll data specifically, uh there are a number of potential uh alternative data sources. Um, now, each of these has a number of uh say pros and cons as well as potential costs um but just just to go through the list uh one possibility would be uh the data from payroll companies um another possibility would be potentially to use uh tax withholding data and a final possibility is to use the data that go into the uh that are reported to the state ui systems um and these are the data that are actually already used as part of the benchmarking process um But like I said, uh, there there would be challenges for each of those, but those are the the avenues uh, I mean I could go into more detail if you want, but those would be the possible potential alternative data sources.
OK. Mister Prouty, um, in recent years the board has seen massive policy swings with each administration. We spoke about that in our personal conversation. And it makes it eliminate certainty. Uh, it makes it more difficult for both the unions and management to kind of plot So, can you speak to how you approach when to change precedent and what factors you consider when doing so?
Uh, thank you for that question, Senator, as we discussed in our our meeting yesterday. Um, uh, we don't scan the horizon looking for cases to overturn. Generally, the way it works is that the general counsel will bring us cases and recommend that we overturn precedent sometimes we do and sometimes we don't. Um, but as quasi judges that's our job is to judge the cases before us if the general counsel asks however uh the things we consider are what was the precedent how long and how well reason was the precedent and sometimes some of them are not well reasoned how long it's been in effect um and also how the world may have changed since that precedent was first established um we've got a ninety year old act um that sometimes keeps pace with the economy of today and sometimes doesn't And then we also consider if we're going to change precedent, should we do it prospectively, uh, or should we do it retroactively? And often we do it prospectively for the very reason, as you mentioned, of fairness, which is to give, uh, the parties going forward the expectation of how their, uh, behavior will be judged going forward, but not to play gotcha with them going back.
I see. When should the board preempt specific cases with rulemaking that broadly applies.
Well, thank you for the question, Senator. I- in terms of rulemaking, the statute, as you know, uh, Congress put in the statute that authority for - for the board to consider. I think that is a tool that should be considered by the board. I think the rulemaking tool does give the the opportunity for notice and review. I have had some experience in in my time at wage and hour and at a workers' compensation to work on that, and I respect that process. But as member Prouty also indicated, a number of the matters come to the board, to the board for consideration. So some of those things happen through, through adjudication.
I'm not sure you answered the question though. Uh, yes, it comes through adjudication perhaps. and you have the right to exercise it, when would you exercise that right? Uh, with rulemaking as opposed to merely wait for or only wait for a case to come before you.
Uh, thank you for the clarification on that. I, as it comes through adjudication, of course we'd have to hear the cases that, that come to us and decide those. Through rulemaking I think there are areas we should look at that are broader, having impact, that, that could use some resolution. I, I, i think it would be helpful in the areas where we seen swings back and forth uh between the different decisions that don't add to stability that aren't helpful to the practitioners to the employees to the unions and i think those may be right for rule making
thank you mr. chairman and let me thank the panelists for being here this morning uh mr. macy um you have served as i understand in several roles at the current labor department, uh, including the acting administrator of the wage and hour division. Uh, the wage and hour division proposed a rule to strip home care workers of their right to minimum wage and overtime. Do you really believe that home care workers should be paid less than seven dollars and twenty-five cents an hour and not ca- not get paid time and a half for overtime?
Thank you, Senator, for your question. within the rule making authority in matters that are pending in that regard i'm not at liberty to really discuss those aspects of it and the background of those those type of issues
ok uh mister macy do you believe it was illegal for president trump to fire quinn wilcox as a member of the nlrb which effectively shut down the nlrb last year
Well, Senator, that's a matter pending in litigation and my role or potential role, uh, assuming I'm confirmed, uh, i- is not to comment on matters that are in pending litigation.
No opinion, no opinion on the legal.
It wouldn't be appropriate for me to comment on that.
Appropriate, OK. Uh, Mister Macy, as you know, one of the most common union busting tactics is to interrogate workers and subject them to mandatory captive audience meetings uh do you have a comment on that do you agree that those meetings should be illegal
well again as i understand it there are matters that are pending before the board that that may touch upon that subject and again it wouldn't be appropriate for me to to comment on that i do think
uh you know you're coming before this
i do
you're coming before the committee and you apparently have no opinions as to what you're gonna do it makes it hard for us to assess the role you gonna play and that re confirms my feeling that i'm gonna vote against you uh mister proudie uh and mister macy spacex owned by elon musk and amazon owned by jeff bezos two of the wealthiest guys in the world have filed lawsuits arguing that the nlrb board is unconstitutional mister proudie is the nlrb board unconstitutional
uh thank you senator sanders uh under the jones and Laughlin decision of the supreme court going back to just after the act was enacted it would found the act to be constitutional so the answer to your question is yes
mr. macy is the nlrb board unconstitutional
i concur with uh member proudie that according to the united states supreme court uh as it stands today and that that's what's been found by the court that it is
um
Let me ask both, Mister Prouty and Mister Macy, uh, yes or no, do you support the pro-act that would make it easier for workers to form unions and hold corporations accountable for illegal union busting?
Senator, it wouldn't be appropriate for me to comment on proposed legislation. My job is to enforce the act as written. If the act changes, I'll enforce the act as it changes.
Let me guess, Mister Macy, you're not gonna comment on that either, huh?
I would not be able to, Senator. Thank you.
alright uh mister matsumoto uh the bureau of labor statistics has been highly uh politicized by president trump uh among other things he claimed that your predecessor uh erica mcinturfer quote quote faked the jobs numbers before the election to try to try to boost commoner's chance of victory end quote do you agree with that statement
uh the the president's statements uh speak for themselves and i'm not i'm not gonna comment on them
he got rid of you all predecessors because he thought she was corrupt basically no comment on that
uh it's it's not appropriate for me to to comment on presidential personal decisions
well let me ask you this if the president of the united states demands that you change the numbers in the jobs report to make him look better Will you obey him? Or will you follow the law?
I do not believe that the president would ask me to do that.
Really?
Uh, however, I I will follow the law, uh, and I I can commit that, um, the the numbers that are compiled by the career staff, uh, at the BLS, uh, uh, if confirmed, those are the numbers that will be released to the public, uh, as scheduled.
OK, thank you.
Uh, Senator Murkowski.
Thank you, Mr. Chairman. Um, Uh, Mister Macy, can you commit to enforcing the National Labor Relations Act fairly, regardless of employer or union affiliation?
Yes, Senator.
Mister Prouty, same question to you, can you commit to enforcing the National Labor Relations Act fairly regardless of employer or union affiliation?
Yes.
Thank you both. Um, as you may know, Alaska has a number of tribes and Alaska Native corporations that operate both public and private sector enterprises. Um hopefully very quickly, how how would you approach questions of labor law as they relate to sovereign entities, or perhaps more complex jurisdictional questions? And I'll I'll pose that to either one of you or both. Mister Prouty.
Well thank you, Senator. Um I I think the answer to that is going to depend on the cases that come before us. I can't um make a pronouncement going forward based on a hypothetical
But you're you're recognizing that when you're dealing with a sovereign entity, it is it is different than what you may have in your regular stack in front of you.
It is, and I've spent some time in Alaska so I'm aware of that, but um again we we can only consider the cases that come before us
Yes.
and I can't really comment on issues that might come before us.
Understood. Thank you. I just I just want an acknowledgement that we are dealing with um Yes. different entities here. Thank you for that. Uh, let me ask you, mister uh, or doctor Matsumoto. Um, and again, this is bringing it back to to my home state. Uh, BLS tracks consumer prices in major urban areas, uh, but my sense is that it is less, uh, effective in capturing the the astronomical cost that we see in our uh, more remote parts of Alaska or off-road communities, whether it's the cost of goods, fuels, air freight, uh, transportation. And and further to that point, um, it's difficult to, um, to capture the value that comes with, uh, subsistence economies to community resilience. It just, it doesn't fit neat boxes. And this is why when we look at some of the challenges that we face in Alaska, we're arguing for more flexibility, we're arguing for more support, because the actual cost to the individual has not been accurately reflected. We are measured against against other um uh population centers that may be connected by road. Right now, I've got communities in Alaska that will be seeing fuel supplies delivered for the first time since September. And it's not because of anybody's fault, that's just the natural cycle. There's two fuel barges that come twice a year, in June, right about now, and then in September. So think about what that does to the cost of everything else. So the question that I have for you is how or whether the BLS BLS can expand or reform its methodologies to better reflect some of the challenges that we see in more remote uh and and highly rural areas. Uh again, reflecting high costs um for transportation, but also the the the complicating overlay of of subsistence activities into um uh uh a metrics that is utilized by BLS.
Uh yeah. Uh thank you for the question. Um I I I agree, it's it's very important. Um the the cpi uh it's restricted to the to the urban population uh now it now urban is defined in such a way that that ends up covering about ninety some percent of the of the population however that still leaves uh a quite substantial portion of the population uh not covered by the index it's something that i've i've long had an interest in uh and certainly it's something that i would uh look forward to uh if confirmed uh looking into seeing if that if there are any ways to expand the coverage
Well, and I I I guess I would put the same challenge to you, um, as as I did with Mister Macy and and uh Mister Prouty in terms of just recognizing that when you're dealing with with tribal entity that is a sovereign entity, uh, look at that differently, but again, when you are dealing with populations that are extremely remote, um, uh, you might need to do a different calculus here. I'd I'd also like to know from you and and I, excuse me, I guess this comes back to to Mister Macy and Mister uh uh Prouty here. Um we we we acknowledge that there is a backlog that continues across the NLRB, but we seem to see it greater in the more remote and rural areas of the country. How would you propose to address that? Uh we need to focus on the backlog, but we've got a real problem when it comes to our rural areas. Mister Prouty.
Um while I acknowledge the problem, Senator, um the regional areas of the nlrb are overseen by the general counsel um there has been a shortage of staffing which we're which she is trying to address now by hiring more people she's also um has an initiative which i can't really comment on but to try to redistribute the cases to make uh the processing of cases more efficient particularly i think in rural areas so that's the extent of my knowledge of that
thank you thank you mr. chairman
thank you Senator Baldwin.
Thank you, Mr. Chairman. Um, uh, Mr. Prouty and Mr. Macy, uh, I wanna talk a little bit about the NLRB, uh, budget to begin with. It's the sole agency that can conduct and certify union elections. And unless an employer voluntarily recognizes a union, this is the only way to form one. The right of workers to organize depends on the NLRB's ability to function and There are workers in Wisconsin, uh, including nurses at Saint Mary's Hospital, uh, in Madison who are scheduled to vote on forming a union this week, um, who rely on a fully functioning board. But the staffing levels have drastically reduced over the last fifteen years, and processing times for cases pertaining to unfair labor practices has lengthened quite dramatically. These cases are mostly brought forth by workers whose rights may have been violated, and they deserve attention. So the, this question is for each of you. Do you think that the NLRB needs increased funding for staff to protect workers, enforce labor laws, and fully do its job? Let's start with uh, Mr. Prouty.
Well, thank you for the question, Senator. Um, the budget which is before Congress now for next year will allow us to continue our functions. Uh, if Congress were to choose to increase that budget, then we would be able to, um, even better and f- and improve those functions. I I wanna point out that part of the problem with the part of the issue with the backlog, is that we've seen a tremendous uptick in, um, in the number of cases that have been filed, both mostly because of increased union organizing. And so, um, the regions, as you said, have been, um, and as i i said to senator mckow mckowski uh the staffs have been cut um not through cut cut cuts but through attrition and layoffs and hiring is going on now and we're hoping
and i i i will get to that in a moment mr. macy your comments
uh thank you senator i appreciate your concern i haven't been at the agency of confirm that that's certainly something i want to analyze and to look at uh and but uh i'm sorry thank you
ok I I just wanna get through a number of questions. Will you commit here today that you will request sufficient funding and any additional authorities to hire and retain sufficient staff for the caseload? Um, you know, uh uh uh I'm also an appropriator, not just a member of the health committee, uh, and I look at, uh, these, uh, issues carefully. So, will you commit here today that you'll request sufficient funding and any additional authority to hire and retain sufficient staff. Mister Prouty?
Senator, uh, uh, I'm, uh, one of potentially five board members, and so I can't speak for the whole board. We would come to that decision along with the general counsel and come to you to request more money. I think both the chairman and and the general counsel last week in a hearing indicated that wou- they would appreciate more money for the NLRB.
And Mister Macy.
Thank you, Senator, as you as you proposed the question, I I would support that. We're And and we would work within what Congress believed w was appropriate.
Thank you. And and more specifically, uh, will you commit to requesting sufficient funds to keep NLRB regional offices open and accessible to the public? Mister Prouty.
I will commit to that again within the context of of my role as one of five.
Mister.
And I would uh I would definitely commit to working with Congress and analyzing the most efficient way to provide those offices and quite frankly we're doing that across the other agencies as well i think that's an important goal
ok now i i wanna bring up the issues of nlrb independence um mister proudy mister macy president trump has shown repeatedly that he is willing to wield his influence on employees of agencies that have historically been independent including firing members of the national labor relations It's essentially, it's essential to me to know if you will exercise independent judgment in this role. I have additional yes or no questions for both of you. Um, are you prepared to issue a ruling the president disagrees with, Mister Prouty?
Yes.
Mister Macy.
Yes.
During your decision making process related to a case or rule making, would you take into account how you anticipate the president may want you to rule on a particular issue, Mister Prouty
No.
Mister Macy
No, I would make an independent decision based upon the facts presented.
And uh if a case comes before you that has uh clear evidence that a company violated a labor law but the White House weighs in to tell you to side with the employer will you follow the law or follow the White House directive? Mister Prouty
I would follow the law.
Mister Macy
I would follow the law.
And lastly, will you, would you report that behavior to Congress, Mister Prouty,
Yes.
Mister Macy?
I would follow all the appropriate reporting requirements that exist.
Thank you.
Senator Ustad.
Thank you, Chairman Cassidy. Um, thank you gentlemen for being here today. Doctor Massimo uh wanna ask a a a question or two about the bls data it's published for policymakers economists businesses it's something that the american public and uh business labor leadership rely upon to make judgments about how the economy is doing where the labor market is and um we've seen in uh recent years the statistical data collection process have massive errors uh including uh from april twenty three to march twenty twenty four they overestimated job creation by eight hundred and eighteen thousand jobs in one year one could almost guess more accurately than that uh and so i'm i'm just curious about uh any thought you have on how bls can improve the data collection and provide a more accurate picture of what's going on in the labor market and the economy
yeah uh so thank you for the question uh this is a very uh important uh topic um there are a number of sources of error for if you look from the first release of data to the final uh benchmark uh revision process um some of that is uh late respondents uh some of that is the uh the initial month's seasonal factor can get revised in later months once you get to the third month then that initial uh revision process holds until the benchmark revision and in the benchmark revision there are number of other sources of potential error uh
maybe how do we improve upon that
mmm yeah so some of this some of the issue uh leading to large persistently negative revisions uh could be uh an issue with the statistical models um so if you're if you're trying to estimate something and you're consistently off in the same direction uh that could be an issue with some of the statistical models that are used in estimation uh uh and so there there could potentially be methodological fixes there um more challenging would be uh if this is due to the decline in uh the initial response rate um and just the overall response rates um and and further study would need to be done into just how much the decline in response rate is contributing um and that that would ultimately be more challenging if the if the sample is becoming less representative
mmm
um then that is where i think we have to look
i i would encourage you to continue to try to prove upon this model cause the way it's working right now is uh questionable so um mister macy mister proudie um i asked this of the nrb nominees that have come before this committee with context of the backlog of cases and um i know it reached a high in twenty twenty four of twenty four thousand cases i believe seventeen thousand backlog ten thousand over six months at this point in time um uh i'll ask each of you um what you intend to do to address that backlog and and um we'll start with you mister proudy
uh thank you for the question senator um the backlog you're referring to is on the general counsel's side the board is divided into the board's side and the general counsel's side so that question would really be more appropriately put to the general counsel because she's in charge of the regions where those charges are filed if i may we have our own backlog on the board side
yes you have your own backlog yeah
right and um since the the um we've gotten a quorum back we've worked very expeditiously to try to reduce that backlog we've gotten it down by over three hundred cases in five months
mr. macy
thank you senator the the backlog is a concern i compliment the current board for the that they've done on that and reducing that uh if confirmed absolutely have my commitment to put in all time necessary cause the parties do deserve fair quick results what will assist is by having more members to the board we can divide cases broader as i understand it where three members can participate in a decision when you divide that amongst the four we can the processing and, and help with that. So I would welcome that opportunity.
And so what you're telling us is we need to move on with our business and get you confirmed. Is that
I would welcome that and appreciate it,
Is that
and would be honored.
Your, your word, Senator. Uh, I appreciate, uh, both of you in your willingness to serve and I just would just, as a general comment about this or any, any other thing the government does when you hold people up, you're wasting their time and their money. And uh, government needs to be more efficient and deliver services in a time frame that people can expect, and I hope you will make that a priority. Thank you, Mr. Chairman.
Senator Hassan.
Thank you, Mr. Chairman, I appreciate uh you and ranking member Sanders having this hearing. And to the nominees, uh good morning and congratulations to you and your family for your nominations, and thank you for your willingness to serve. let me just start with a question i ask all nominees um if directed by the president to take an action that would break the law would you follow the law or follow the president's directive and mister prouty we'll start with you
i would follow the law
thank you mister macy
i would follow the law
thank you doctor ma
uh uh definitely the president would ask but i would to me to do anything like that but i would follow the law
that's my thank you and uh to the first part of your answer there i appreciate all three of you committing to following the law um the president is giving us now almost daily examples of his willingness to break the law and his willingness to direct other people to do the same thing so i hope you will keep that in mind um to mister proudie and mister macy congress established the national labor relations board as an independent federal agency to be free from political influence to executive control now i know senator baldwin asked you a similar question but i wanna just make sure i hear it directly from you if the national labor relations board held that a practice was illegal under the national labor relations act and the president said that he disagrees would you instruct agency staff to continue to follow the board's ruling mister prouty
yes
and mister macy
yes
thank you uh doctor matsumoto congress needs to work on a bipartisan basis to help insure that the benefits of ai go to workers not just the wealthiest americans and major corporations Senator Banks and I have a bipartisan bill called the AI Workforce Prepare Act, which would improve the federal government's capacity to assess how AI is impacting the economy, determine how AI is displacing workers, and update retraining programs so that workers are not left behind. Doctor, if confirmed, will you commit to reviewing this legislation and working with us to ensure that the Bureau of Labor Statistics has the tools that it needs to help us understand the impact of AI on the workforce?
Uh, yeah, if if uh if confirmed I look forward with working working with you and others on on the topic of measuring AI.
Thank you very much. And, yeah, really measuring its impact on the workforce, and then what we need to do uh to uh respond to that impact, I think is going to be a major challenge uh for all of us and should be a goal we can all share. Um, Doctor Matsumoto, another question, maintaining the independence and data integrity of the bureau is obviously, really important. data from the bureau play a critical role in assessing the health of our economy and setting sound economic policy including the interest rates set by the federal reserve while the bureau is widely a widely respected statistical agency president trump has politicized the agency by firing bureau commissioner um in august after a weak jobs report and making completely baseless claims that the numbers were rigged These, this is the quote, he said, the numbers were rigged, close quote, to make the president quote, look bad, close quote. If confirmed, how will you protect the neutrality and independence of the BLS?
Thank you for the question, and uh I do agree that uh fulfilling the mission of the BLS to accurately uh measure this data, uh does require uh independence from from political uh inter interference, uh and I I if confirmed, you know, i- i fully commit to maintaining the integrity, uh, and independence of the BLS.
Do you have ideas about how you can go about doing that? I mean, what, are there structures, are there, um, chains of command? Are, is there the presence of an I'm just trying to think of what practical things you think you can do to protect that neutrality.
Yeah, cer- certainly, uh, transparency and openness with, with data users, um, i i think helps helps keep the the process sort of free from from political political interference um if the data users can see sort of how how the data are constructed uh and that there is a reason
right
for the the methodological and data decisions that aren't uh that that aren't um political um and and just uh i will note as the uh uh i would be the the sole political appointee at the bls if confirmed uh it is important that decisions not be made by me alone on these matters, that they come from the career staff with the expertise.
I I appreciate that, and I think one of the other things to do is just to try to make sure that the career staff understands that you will stand up for them when there is political pressure. One of the things we have seen is that whistleblowers have been retaliated against, and we have also seen uh layoffs and firings of career employees who uh might um provide information that the administration doesn't like. And so I think it's gonna be really critically important to reinforce to them that you'll have their backs. Um, I appreciate, uh, your willingness to take this on and thank you. You're back.
Senator Hawley.
Thank you, Mister Chairman, uh, thank you to the nominees for being here, congratulations on your nominations. Uh, Mister Macy, Mister Prouty, if I could just start with you. As you're probably aware, there are major corporations, mega corporations in the United States who are currently trying to block the efforts of their American employees of whom they have too few, I might add, from engaging in collective bargaining. And there's no worse example of this than Amazon. Let me show you a picture here. These are Amazon workers on Staten Island who were voting to unionize back in twenty, twenty two. This was a huge landmark win for labor and for the employees. It took them years to get to this vote. Amazon, of course, fiercely resisted it, did everything they could to try and stop it, pulled out all of the stops. And yet the employees, as is their right, of course, under the law, voted to unionize. Now, after they did so, Amazon proceeded to engage in a delay of four years before they entered into negotiations for a first contract with management. Four years. Now, as you know, federal law requires bargaining, good faith bargaining, to get to that first contract. But Amazon delayed and delayed and delayed. Now, a few months ago, the Teamsters president, Sean O'Brien, sat right where you two were sitting and explained this is common practice across the industry in these multinational mega corporations, Amazon being one of the worst offenders. They deliberately delay and hold up the process of getting to a first contract. I was stunned to learn that the average time to a first contract is four hundred and sixty five days. Now, I emphasize, this is after the employees have exercised their federal right to collectively bargain. Four hundred and sixty five days in half of cases just about, it is over two years before there is any kind of an agreement at all. So let me just ask you, first of all, are you familiar with this issue, are you concerned about it? Mister Prouty, go ahead.
Thank you for the question, Senator. Um, yes, I'm obviously aware of it and I'm concerned about it. Um, as I've said publicly, the um remedies available under the act are somewhat limited. I'd invite uh the Congress to strengthen the act, but um, we we process cases as expeditiously as we can. We have a huge backlog, as you know.
Absolutely, Mr. Macy. I wanna come back to your point about what Congress should do. But, Mr. Macy, go ahead. Are are you familiar with this problem you're concerned about?
I am uh aware of it and I am concerned about it.
Good, good. I'm glad to hear that. Well, I I agree with you, Mr. Prouty, that there's there's steps for Congress to take here, which is why I'm pleased that yesterday the House of Representatives passed legislation that I wrote and introduced on this side of the Capitol, along with my friend, Senator Booker, and Senator Marshall is a cosponsor, a number of other my colleagues on the other side of the dais. uh, called the Faster Labor Contracts Act, and it, it just tries to actualize the requirements that are already in federal law, namely that employers, once their employees have voted, as is their right, to unionize and collectively bargain, we put a shot clock on that bargaining process so we can get to a first contract. As I said, that legislation passed the House. It would be enforced if it were to pass the Senate, be signed by the President, enforced by the NLRB. Do you think that providing more of a framework creating a framework for a first contract, putting a a time line, putting a shot clock on those negotiations. This bill also provides for arbitration, uh, which parties can choose their arbiters and so forth. But if they can't reach a contract within a certain amount of time, then we get arbitrators to help them. Does that sound like the kind of thing that would help, again, give give voice, give give, make actual and real this right that, that, uh, employees already have under federal law? Go ahead, Mister Prouty.
senator i i've got to put on my hat of board member um uh i really it's not really appropriate for me to comment on legislation uh either way on on what would improve the act my job is to enforce the act as it stands
but you would enforce it if it were passed
i would
good mister macy
uh thank you senator uh the same i'm in a position that it would not be appropriate for me to to comment on pending legislation but to answer the next question I anticipate is if it were passed, we would abide by the law.
Good, good, well I hope that you'll soon have the opportunity to enforce it. I'll do my best on on my side of things here, but I I think it's vitally important that we uh make real the guarantees that are already in federal law. Let me just ask you one other question here in my time remaining that's also related to Amazon let me show you another Amazon related picture this I think will be familiar to everybody in the room we've got an Amazon truck we've got an employee here, who is wearing an Amazon branded T-shirt and other logos, hat, carrying an Amazon package. Now you might think that this person wearing all this Amazon gear carrying the Amazon package is an Amazon employee, but oh lo and behold, she's she's not, according to the company. The company runs a a third party organization, a delivery service provider that they also control and subcontract with for the purpose of avoiding having to pay this good person Uh, full wages, health care benefits, giving her the benefits of other uh, rights that have been won in collective bargaining. My question to you is, I'll let you take a first stab at it and I'll follow up with some questions for the record. Don't you think it's time that we put an end to th- this kind of blatant attempt to avoid federal labor labor law? Amazon has for years operated this program with the sole intent of avoiding having to pay these people who they say are not really their employees, though they micromanage their schedule, to the second every day, don't you think it's time that we put a stop to their uh attempts, Amazon's and others to evade federal law and the requirements of collective bargaining by treating these people as if they're not really their own employees. Mister Prouty.
Senator, uh, as you may know, that very issue is on my desk right now, and so I can't really comment on it.
And, uh, just tell us why it's on your desk, because the NLRB has has taken action on this.
There is a proposed settlement of a outstanding case which is before us for review.
Well, well, uh, Mister Chairman, I know my time's expired, so we'll leave it at that. I'll have some follow-up questions for you. Can I just finish by saying I think that this is outrageous, what is over my shoulder here. The idea that this employee, who is, every moment of her life practically is directed by Amazon, yet they don't have to pay her, they don't have to honor the commitments of under collective bargaining that might apply to her, I think is ridiculous. And if the NLR NLRB doesn't have the authority to do something about it now, we should give you that authority. Thank you, Mister Chairman.
Senator Kim.
uh thank you chairman uh thank you to the three of you for coming on out here i guess i wanted to start with mister macy and mister proudie yeah we talked a lot you had already talked about the independence uh issues and other things of that nature i just wanted to draw down a little more last year president trump issued an executive order that directed the nlrb to take some specific actions when it came to the issue of college sports and i wanted to ask the two of you was that executive order was that direction by the president to the nlrb appropriate. Mister Macy, I'll start with you.
Well again as it's something that may be pending before the nlrb i'm really not in a position to to comment on that i do think that that's something that that we'll have to review assuming i am confirmed
So you're you're not able to say whether or not you thought that that because i guess i was thinking about because you were going back and forth with some of my colleagues about these hypotheticals about whether or not you would take action that is based off of what you think is the right thing to do or or things that are being directed uh mister pratt i would be interested in hearing your response
uh uh uh senator my understanding of the act is that we respond when a case is brought before us either a union election or an unfair labor practice case uh i'm not aware of any um process by which we implement an executive order of the president
so when the president says that he directed lr nl nlrb what was the response from nlr nrilb over the last year
we haven't encountered the issue of uh college athletes in the last year
mister maybe i'll return to you because i'm just trying to get a sense of this from just to have you on the record is the nlrb an independent agency
uh as determined by congress when the act was passed it was passed as an independent agency and until that is determined differently i believe it is
and i'll just wanna point out even on the website of the nlrb it says the nlrb is an independent federal agency created in nineteen thirty five so it's not just from the congressional stand point and i think that that's important for us to be thinking through here and i would just say uh i wish you had a stronger answer there mister macy i was listening to and i thought you did well when it came to some of these hypotheticals but here was just a a clear-cut case where the president used the word directs the nlrb uh that's not right uh and and i wish you would be able to just say that is not something that the nlrb is required to be able to follow up on mister proudy i wanted to just ask uh you talked about the importance of having full board membership can you just tell us a little bit more what you're not able to do what the nlrb is able to do right now without the full board being in place
oh thank you for the question senator um under the statute there are supposed to be five members of the nlrb uh as the statute has been implemented we assign cases to panels of three um so if we had four or five board members we could uh essentially tackle more cases each board member retains the right to get onto and express their opinion on any case but a lot of our cases are routine a lot of our cases are unanimous and so more board members would mean more efficiency
thank you uh doctor uh matamodo i
um what do you mean by independent oversight
uh well i i guess i just wanna uh what i'm just trying to say is uh do you agree that there shouldn't be any politicization of the data any ability for those in elected office or others to be able to determine what information is made available or what information is taken into account in your assessments
um yeah yeah i agree that the the bls in matters of uh constructing and disseminating this data should have independence
and when it comes to your own performance here if confirmed i wanted to ask if you would commit to divesting from individual stocks uh if confirmed to this job
uh my uh ethics agreement uh requires me to divest from uh one one company um i have uh small positions in a couple of other companies uh but the ethics agreement did not require me to divest to them
ok well look i'll just say you know look uh uh you know members of congress are not at this point required to divest uh i have i think it's important for us to show the american people that we are making these decisions based off of what's best for them now but it's best for us and when your position is one that actually has a lot of data coming in to you from across many different industries and sectors many different companies uh and you often have that information before it's made public in fact the usa jobs report often has an impact on the stock market often has uh impact on what comes next so i would just very much uh implore you uh to take a position here where you're not invested individual stocks that you can say for certainty uh that that is not something that drives or motivates you. And i'm not just pointing it out for you, i just think for anyone in the position that you are seeking uh that would be the appropriate position. And with that i yield back.
Senator Armstrong.
Good morning. And uh this question first for uh to Mister Macy please. So uh you mentioned in your testimony about the backlog that exists and i heard your response. uh, Senator Kim there in that regard, but just curious if there's other ways that you see that, uh, we can really improve improve the efficiency in moving through the backlog that exists.
Well, well thank you, Senator. I, as you know, I haven't had the opportunity to to be at the board. I look forward to that and have confirmed I look forward to to working on that with the other board members in that regard. Um, I i i don't know enough about that yet to to to comment other than the willingness as as cases are distributed amongst the board to make that efficient and effective. The other aspect of it having a pretty long career in collective bargaining and the background of it i also welcome uh hear the concerns of the panel and welcome the opportunity for advice and consent down the road in that regard.
OK. Great, thank you. And then secondly, and you know I come from a business background, and I wonder about um how you get a feedback loop about some of the practical, very pragmatic on the ground issues that uh Senator Hawley mentioned a while ago, and how you kind of have a window in to what's really happening in on the front lines of issues like that.
Uh I I I appreciate that as well because with my background there wasn't a day that went by that i wasn't on the phone or in a meeting with a small business or medium business or an employee or union rep as far as that goes to talk about the practical impacts of all of this on a daily basis that is something i welcome the opportunity to bring to the board with that background of everyday real life experience
yeah so do you do you envision setting up some kind of process or feedback loop that gives that is a place where you can really um take in cause i'm i'm sure that's a very large set of uh squeaky wheels out there but curious how you actually convert that into thing that you can take action on
oh thank you and i welcome that opportunity too as senator johnson had indicated as we began the hearing today i have been involved in in many organizations and community activities and welcome the input i think we get good solutions that way i i agree and i hear in my capacity working here in d. c. with the agencies that they do that we get some voice but i i agree with you that i don't think we get enough voice so i really am looking forward to being out and about and getting the voice of the small employers the the business reps the union reps the other that are out day-to-day and not necessarily just the voice here
yeah Great, thank you, appreciate that. And uh to Mister Matsumoto, um boy uh what a what a challenge you have in terms of with, as you mentioned in your uh testimony, the issue of having less and less lower and lower response rates and curious and and yet people are look at that data as though it's the same, and despite the reduction that we have. so what are you and i i noticed your comments on this but i wonder what specifically you intend to do about trying to mitigate that or uh or collecting other data so i'd love to hear your thoughts on that
yeah uh so thank you for the question um i i agree that it's very important uh probably uh the first step is to determine just how much of an impact the declining response rate is having um and making that clear to data users Uh, so, so, uh, to make sure that all of the survey programs have up-to-date non-response analyses published on the web page. Um, that, that will help us to determine, uh, what effect the declining response rates is having. Uh, and then we can start thinking about, uh, what, what some of the potential, uh, solutions could be. Um, now there could be some ways to, to, to maybe incentivize response. That, that could be examined. Um, there there's a, you know, a lot of challenges with that. Um, however, I do think ultimately, um, there is a an end date to the survey-based system. Um, I don't know when that'll be. Um, but it it's something that I believe we should be preparing, uh, to to address. And so, and any, uh, you know, I believe that sort of all the programs should be looking at ways to incorporate, or at least research ways to incorporate alternative data sets.
and do you think there's some threshold that you'll reach uh your your point is it's going to keep declining uh and and likely have to shift gears on that do you think there's some point where you have to announce to the businesses that depend on that that um that it may not be reliable and and as um something we can rely on for the future
yeah and that's why i believe that the nonresponse studies are are essential um a decline in response rate does not necessarily mean that there there is an issue with the data Uh, but it, you, you could reach a level where you just do not have enough respondents to, um, get a representative sample.
Yeah, great. Thank you. Thank you, Mr. Kerry.
That's something that the, the public should be aware of.
Senator Blunt Rochester.
Thank you, Mister Chairman, and thank you to, uh, the nominees for being present. Uh, I'm pleased that we are considering a bipartisan pair of nominees because the partisan dismissal of Democratic board members and commissioners across agencies throughout the duration of the administration has hampered good policy um also oversight as well as been just unacceptable. Um I wanna start with my questions for um Doctor Matsumoto um first of all to say it's good to see another blue hen here in at the cap at the capital um as you know, the Bureau of Labor's Statistics was first established in eighteen eighty-four, a hundred and forty-two years ago. And since then, it has provided critically important information about our labor market and economy. Um, I, uh, served as Delaware's Secretary of Labor, and so to me, the data is so important. Um, as BLS Commissioner, you would be charged with maintaining trust in the data BLS provides to the American people like inflation measures and job reports. Um, you've been at uh, BLS for about a decade. Is that correct?
Uh, that is correct.
OK. Um, in the decade that you've been with the agency, was there a time when you think our country should not uh have trusted or should have doubted the work of the agency?
Yeah, so I I just wanna say that uh in my time working at BLS, Um, I I've had plenty of great experiences uh with my coworkers. Um, uh it is it is really the the dedication and professionalism of the staff of BLS i is really something that is impressive. Um, and ultimately this is not a job I would want if I did not have full faith in the staff at the agency.
Thank you. Um, I know I know you are affectionately known as a data nerd. That's what I've read.
Yeah.
Um, during your time did you ever believe that the jobs report numbers or any numbers were being faked?
Uh, so I I believe there are are technical reasons uh that that could explain perhaps these these larger visions but uh no, no I did not.
OK, thank you. Uh, I'm I'm glad that in your testimony and comments here that you committed to maintaining the independence of the BLS. Um, unfortunately, and we've seen it right here in this committee, that nominees and appointees have found it very hard to either abide by the promises, um, either they get into the job and then they have to walk it back, or they get fired. And so I hope if you are confirmed, your experience is not not the same. Um, I would love to ask, um, as Commissioner in this digital age, um, with new technologies and complex labor market challenges, including the impacts of AI, how would you approach bls modernization are there things that you would do differently from past commissioners uh tell me a little bit about that vision
um yes so i think given the uh resource constraints faced by the agency uh i am very interested in in the uh potential use of these new tools uh to help with the work at the agency and now of course there are a lot of challenges to using these tools in a statistical agency where you're dealing with uh non-public personally identifiable data, pre-release data. Um, and so certainly uh I view I view what my role as as Commissioner would be is just to help uh whatever the the barriers are to the adoption of of these tools to to address them so that that the the staff has has access to them.
Uh, you you mentioned resources and that you preempted my next question, which is do you believe that the BLS budget is sufficient to deliver current products and invest in modernization.
Uh, it's so so ultimately that's a a question for for congress. Um, congress will s- will set the budget and and I will, um, you know, work with whatever whatever is allocated, although although I do hope to have some input into the into the process.
Yeah, cuz as former secretary of labor, I put forward proposals. I knew what my dream list was. I knew how I wanted to meet the mission. So that's why I asked the question, do you uh, think that you have the resources.
Uh, so it's certainly something that I I will evaluate, uh, if confirmed, uh, the the current status of the of the agency.
Um, I am at fifteen seconds, I will submit a question to the record, uh, for a real focus on AI and your approach to AI and how you would lead, uh, in this error. And, um, also again, um, uh i'm concerned that even if you're um even if you are confirmed we've actually seen people either walk back things or be fired so so i yield back mister chairman
secretary asking questions you know i'm saying uh i should have handed you the gavel uh senator also brooks
thank you so much mister chair and thank you as well to all of our uh nominees for being here today.
I'm sorry, excuse me, Markey is next. I'm sorry, I apologize.
No, no, she can go, you should go.
OK, great. Also Brooks.
Over Memorial Day my constituents uh drove to picnics and parades um after filling up their cars at four dollars and fifty one cents a gallon. Um the average electricity bill in Maryland has hovered um around a do- hundred eighty dollars a month and the cost of groceries continues to rise. As many as five million Americans have lost their marketplace insurance because of this administration. This has made their health care less affordable, and many Marylanders are working two or three jobs just to make ends meet. Um, and they're seeing that it still doesn't all add up, and this is all while this president is claiming that the economy is booming. Uh, President Trump promised a lower cost if he was elected, and he's not talking about lowering gas prices,
So, um, as, as, uh, Commissioner, uh, of Labor Statistics, um, I I don't think it's appropriate that that I be viewed as as either a cheerleader or or a critic of the economy, no matter what's happening. Uh, I think it's important that uh there's faith that the data being presented are are being published are not being pushed.
Well, I'm I'm not asking you to be a cheerleader, but let me just ask you this. Do you know how much, for example, the cost of ground beef has increased over the last year?
Uh, I I do because uh it is a category in the consumer price list.
So it's twenty one percent. Do you know how much the cost orange juice has increased over the past year.
Um, I do not.
About twenty three percent. And so you you, sir, are currently a White House senior economist uh at the White House and uh at the Council of Economic Advisors and so I'm sure that you're also just paying attention to um to grocery prices and the rising cost and so do you acknowledge then that grocery prices have increased for Americans?
Um, I I believe that the the CPI data are are accurate in that matter.
Meaning, yes, they have increased. Correct?
Uh, yeah, I believe grocery prices in the CPI have increased, yes.
OK. And you acknowledge that gas prices have increased for Americans since the start of this administration as well.
Um. Yeah,
That's easy, right?
like yeah, like like like I said, um, you know, my my focus is on making sure that the data presented are are accurate.
Well, well, you're saying that these this is accurate data.
Uh, the, yeah, so uh my role at the CEA is to provide uh a a feedback and analysis report,
No, no, no, no. I'm just asking a specific question.
and stuff.
Do you acknowledge that health care prices have increased for Americans since the start of the administration?
Um, I believe the CPI is accurate in that matter.
OK. So then do you still agree with the president that despite rising costs for Americans, that the economy is booming?
Uh, ag again, that is not a a type of statement that that the CE that the BLS commissioner would make.
When I'm saying does the data support that?
That's not that good. Uh, the the the BLS presents data uh objectively, it does not make make make a lot of sense.
OK, well, sir, it's just it's not intellectually honest to say that rising prices, Americans can't
Um, I didn't quite follow.
OK, well let me go to another question. So in February, White House National Economic Council Director Kevin Hassett called for Federal Reserve staff to be disciplined over an independent report that concluded tariffs were harming American businesses and consumers and I led many of my colleagues in a letter to Director Hassett demanding that he retract his suggestion, the civil servants should be punished for producing data demonstrating the true cost of the trump tariffs. And so do you agree that Director Haass's comments were inappropriate?
Uh, I I believe that uh Director Haass had addressed that.
No, no, I'm saying do you believe that it's appropriate to to discipline civil servants for providing data and information consistent with their jobs?
Uh, I do not.
OK. And will you then pledge to resist any political pressure from this White House on the Bureau of Labor Statist Bureau of Labor Statistics monthly inflation reporting especially as it relates to tariff driven price increases on goods and services?
Uh, again, I I fully commit to maintaining the integrity and independence of the BLS, and that the data produced are that produced by the career staff at the BLS.
OK. Thanks so much.
senator markey
thank you mr. chairman for too long the rules of our economy have tilted towards corporate power and away from working people productivity is up profits have soared executive compensation has exploded but millions of americans are struggling to afford housing healthcare gas and even groceries in a word they're being denied their dignity We have to shift the balance of power back to the side of everyday working people. Americans need a strong and independent bureau of labor statistics. Americans need a strong and independent national labor relations board. Yet, uh, for Auditor-in-Chief, Donald Trump cares more about lining the pockets of his billionaire CEO buddies and trying to cook the books than in having independent agencies protect the legal rights of workers. So let us not forget why we have vacancies before us today. Because Trump thinks the government works for him and not for the people of our country. The numbers published by BLS, Bureau of Labor Statistics, don't belong to the president. They don't belong to Wall Street or the corporate executives. They belong to the American people. Bureau of Labor Statistics data tells us whether wages are rising, whether families have to spend more. to put food on the table whether employment is up or down facts can't bend to political pressure so uh doctor uh i hope you will hold firm against the full-on assault on scientific and statistical objectivity the american people deserve nothing less than for you to be a barrier against the rising tide of political interference from sixteen hundred pennsylvania avenue But information alone is not enough. Workers need power. That's where the National Labor Relations Board comes in. The NLRB exists to protect the rights of workers to unionize on their own without interference from their employer. But let's be clear. Um, this is not an even playing field. Working people need federal agencies that will have their back and enforce the law. You only need three things. in politics, in public service. Backbone, backbone, and backbone. And the backbones's of everyone over at this agency is gonna be challenged by Donald Trump every single day. So, you have to show that. It's fine. You have to show that courage. Mister Prouty, I'm grateful for your continued service on the board. Could you explain to us why congress set up the nlrb as an independent agency under the national labor relations act
uh thank you for the question senator uh the act was uh enacted in the midst of the depression in order to facilitate labor management relations and to protect the rights of workers to organize and to enforce that right uh by the by the protection of federal law
yeah and Um, are you concerned about its ability to continue to play that role, looking at what is unfolding across the, um, economic landscape from the perspective of White House pressure being imposed to deny the reality of the state of our economy?
Senator, as a, as a member of the board, all I can do is adjudicate the cases before me and interpret the act, and apply the facts to the, to, to the law. Um. the the cases are are brought in the area of labor management relations and it's an act that was designed specifically as i said to protect the rights of workers
yeah
yeah again my concern is that gas prices are up the um we saw today a dramatic rise in the cost of living of inflation it's absolutely real uh and it's rumbling right through people's lives uh and they can see it at the kitchen table every single day Um, gas prices are up, food prices are up. Um, health care costs are up, housing costs are up. Everything is up, up, up, up. Uh, and that cost is gonna cascade right down into the lives of ordinary families all across our country. Um, and the NLRB is there in order to ensure that workers have their rights, that workers can argue for higher wages to deal with higher inflation, with higher cost of living. with higher affordability costs that's the job i'm ensuring that workers get the protections they need now to deal with this economic catastrophe uh which has been unleashed by the trump administration and that's gonna be the job of the nlib to make sure those rights are protected so uh thank you mister proudie and thank you mister chairman
uh that's pretty much it sir
D
Thank you for today's um meeting. Record from the Coalition for a Democratic Workplace, the National Retail Federation, and the National Association of Manufacturers, without objection. For any senator wishing to ask additional questions, questions for the records will be due at five PM tomorrow, June eleventh. Thank you again for being here. The committee stands adjourned.
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